Notwithstanding a turbulent global trade environment last year, Southeast Asia performed relatively well and is projected to have grown by 4.8 per cent in 2025.
Barring unforeseen geopolitical disruptions, Southeast Asia is projected to see a steady growth of 4.3 per cent in 2026 and remains one of the fastest growing regions globally, a Cushman & Wakefield report said.
Private consumption across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam has remained resilient, with relatively low unemployment rates and rising household incomes.
Private consumption across SEA-6 economies (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam) has remained resilient, with relatively low unemployment rates and rising household incomes.
This resilience was driven by a combination of government fiscal support measures, falling interest rates and stabilising inflation, the Chicago-based global commercial real estate and property management services firm’s ‘Southeast Asia Outlook 2026’ said.
Fiscal balances for most economies across SEA remain below their pre-pandemic levels. This has helped sustain household consumption and business activity over the last few years.
While current fiscal positions are not yet concerning, they may constrain the scope for future government support, the report noted.
Amidst global economic uncertainty and cost of living concerns, consumer spending in the region is expected to remain cautious in 2026, with consumers downtrading on their purchases (in some segments) and cutting back on discretionary spending.
Forty-three per cent of consumers in the region stated they are likely to cut out-of-home expenditures to save money.
While SEA’s overall retail sales growth faces near-term headwinds, the long-term prospects remains compelling for businesses, underpinned by increasing urbanisation and affluence in the region.
By 2035, private consumption across SEA-6 is expected to reach $5 trillion, rising at 8 per cent per year.
Fibre2Fashion News Desk (DS)
